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4 Strong Construction Loan Options in New Jersey for New Builds, Teardowns and Renovations
New Jersey has plenty of land for new homes, but a lot of building happens on lots that already hold a house: knockdown-and-rebuilds in older suburbs, second-story additions, and shore homes that need to be raised or replaced. If that sounds like your project, four strong construction loan options to compare are Amboy Bank, Citizens, Columbia Bank, and TD Bank. Each publishes a single-close construction-to-permanent loan that covers New Jersey properties.
Disclosure: My Construction Path may be affiliated with, or receive compensation from, lenders featured in this article. Lenders are listed alphabetically, not ranked. Programs and availability change, so confirm details with each lender.
How we chose these lenders
We kept a lender on this list only if its own website shows:
- New Jersey availability for residential construction financing
- A one-time close, so the construction loan and permanent mortgage close together
- Clear project scope, such as whether teardowns, renovations, or building on land you own are allowed
- A described draw or builder process
Every detail below is drawn from each lender's official pages or reputable third-party coverage.
Comparison at a glance
| Lender | Where in NJ | One-time close | Renovation / teardown | Land you own | Builder & draws |
|---|---|---|---|---|---|
| Amboy Bank | Central NJ bank based in Old Bridge | Yes | Renovations, including second-story additions | Yes | Portfolio lender; construction line plus permanent loan |
| Citizens | Construction-to-permanent program offered in NJ | Yes | Yes, including teardowns | Flexible lot options | Inspection before each draw |
| Columbia Bank | NJ properties only | Yes | Yes, including tear-down and rebuild | Not specified on program page | How interest is handled during the build varies by lender. |
| TD Bank | Loan officers across North, Central and South Jersey | Yes | Yes | Existing lot loan paid off at first draw | Inspection at each draw; builder review |
Amboy Bank
Who it fits: Central Jersey homeowners who want a local, relationship-style lender for a new build or a big addition.
Amboy's One-Time Close Construction Loan gives individual homeowners a construction line and a permanent loan in one closing. The bank says its team has supported personal home construction for more than 50 years, and that it keeps these loans in its own portfolio.
Get connected with this lender
Notable features:
- Free permanent-loan rate lock at origination
- Works for buying a home from a builder who requires installment payments, or building on a lot you already own
- Renovation uses include buying a home that needs work or a significant renovation such as a second-story addition
Amboy's appointment page lists its Old Bridge office for in-person meetings, so expect a local-bank experience rather than a national call center.
Citizens
Who it fits: Borrowers who want one loan whether they're building new, renovating, or tearing down and starting over.
Citizens' Construction-to-Permanent Financing program combines the construction or renovation loan and the permanent mortgage into a single closing, with flexible lot options. How interest is handled during the build varies by lender. Its mortgage disclosures list New Jersey among the construction-to-permanent states.
Get connected with this lender
Notable features:
- Your builder requests funds for completed work, and Citizens orders an inspection before each draw
- Depending on location, a flood insurance premium may be billed during construction
- CNBC Select named Citizens among its best construction loan lenders
Citizens lists cooperatives and investment properties as ineligible.
Columbia Bank
Who it fits: New Jersey borrowers who want a lender that focuses its construction-to-permanent product on the state.
Columbia Bank's Construction-to-Permanent Mortgage is available only for properties located in New Jersey. It covers building a new home, renovating your current one, or tearing down and starting fresh.
Get connected with this lender
Notable features:
- Fixed or adjustable rate for a primary or vacation home
- No need to refinance once construction is complete
- How interest is handled during the build varies by lender.
- Work with an account executive or apply online
The vacation-home eligibility is worth noting if you're planning a shore build.
TD Bank
Who it fits: Borrowers who own land, or have a lot loan to pay off, and homeowners planning a major renovation.
TD's construction-to-permanent loan uses one application and one closing for new construction or renovations, and converts to the permanent mortgage once the home is complete and a certificate of occupancy is provided. TD lists mortgage loan officers in New Jersey in towns including Bernardsville, Cherry Hill, Jersey City, Montclair, Princeton, and Toms River.
Get connected with this lender
Notable features:
- For 1-4 unit primary residences and second or vacation homes
- If you already have a loan on the lot, the first draw pays it off before construction starts
- Funds you've already put into land, architectural drawings, and permits can generally count toward your down payment
- An inspection is done at each draw request, and TD reviews the builder's financial statements, license, and insurance
TD doesn't currently offer construction financing for condos or co-ops, or FHA or VA construction loans.
Other New Jersey lenders to consider
FNBA offers construction financing for South Jersey customers, with funds released in stages after inspections of completed work and a possible transition to a permanent mortgage. Mid Penn Bank lists construction mortgages for single-family homes, significant rehabs, and additions, and has a Central and North NJ mortgage team.
Get connected with FNBAGet connected with Mid Penn Bank
How to choose a New Jersey construction lender
- Name your project type up front. A teardown, an addition, and a ground-up build on vacant land are underwritten differently. Columbia and Citizens explicitly mention teardowns; Amboy mentions additions.
- Check flood exposure early. For shore and river towns, look up your lot on FEMA's Flood Map Service Center before you price the build, and ask how flood insurance is handled during construction.
- Compare one-time and two-time close. One closing means one set of closing costs and no second qualification. Ask each lender which structure it uses.
- Size the loan. If your project may exceed conforming limits, read our guide to jumbo construction loans before you apply.
- Know the finish line. Ask what's needed to convert to a permanent mortgage after the build, including the certificate of occupancy.
Frequently asked questions
Which lenders offer one-time close construction loans in New Jersey?
Amboy Bank, Citizens, Columbia Bank, and TD Bank all describe single-close construction-to-permanent loans on their official sites for New Jersey properties.
Can I tear down my house and rebuild with one loan?
Often, yes. Columbia Bank and Citizens both list tearing down and starting fresh as an eligible project. Confirm how each lender values the lot and the existing structure.
Can I finance a shore or vacation home build?
Some lenders allow it. Columbia Bank lists vacation homes, and TD covers second or vacation homes. Ask about flood zone and insurance requirements early.
Can I use land I already own?
Yes, with several lenders. Amboy lists building on a lot you own, and TD says an existing lot loan is paid off with the first draw.
Can I finance construction on a condo or co-op?
Usually not. TD doesn't offer construction financing for condos or co-ops, and Citizens lists cooperatives as ineligible.
Find your New Jersey construction lender
Every New Jersey build is different, from a Bergen County knockdown to a Cape May County raised home. Get connected with a construction lender at My Construction Path to compare construction loan options for your land, budget, and timeline, and see which builder-friendly lenders serve your area.
My Construction Path may be affiliated with lenders featured in this article. Lender programs, eligibility, and service areas change often and vary by location. This article is for general education and is not a commitment to lend. All loans are subject to credit and property approval by the lender.